Former Prasa executive convicted for fraud

Former head of engineering services at the Passenger Rail Agency of South Africa (PRASA), Daniel Mshushisi Mthimkhulu was convicted on three counts of fraud.

His conviction was handed down by the Johannesburg Specialised Commercial Crime Court sitting,today, 31 January.

Mthimkhulu was charged with nine counts of fraud for allegedly misrepresenting his qualifications to PRASA.

Claiming amongst others, to have acquired a master’s degree from the University of Witwatersrand, as well as a doctorate in engineering management from the Technische Universitat Munchen (Munich Technical University) in Germany.

“As a result of this misrepresentation, the rail agency suffered prejudice in that Mthimkhulu’s annual salary hiked from R1.6 million as executive manager, heading the engineering services to 2.8 million,” said the court.

In June 2010, he lied to PRASA about a received job offer from a German engineering firm, for a position as an engineering services specialist at a salary of R2, 8 million per annum.

Consequently, PRASA made Mthimkhulu a counter-offer in September 2010 at a salary of R2,8 million.

State Advocate James Bhengu from the Specialised Commercial Crime Unit (SCCU) of the National Prosecuting Authority (NPA) argued that “PRASA suffered prejudice as it was induced into employing and keeping Mthimkhulu in its employment, under a false and fraudulent profile.

“The court should reject his version that his Curriculum Vitae (CV) was manipulated by a third party, it is farfetched and strange.

His actions exacerbated the financial situation at the rail agency that was already suffering from financial constraints,” said Bhengu.

The case was remanded to 24 February, for transcripts of proceedings as a new Regional Magistrate will be taking over the sentencing proceedings.